INVENTORY MODELS WITH A NEGATIVE EXPONENTIAL CRASHING COST TAKING TIME VALUE INTO ACCOUNT

Abstract

This paper discusses the inventory replenishment policy over an infinite planning horizon with a negative exponential lead time crashing cost, taking time value into account. Out, work is based on the paper of Ben-Daya and Raouf that has been cited 65 times. We extend their model to incorporate the time value of money and then find the criterion to decide the optimal solution. Numerical examples illustrate our findings to demonstrate that we provide an easy and efficient procedure to find the optimal solution.